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tv   World Business Report  BBC News  November 22, 2023 5:30am-6:01am GMT

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and what to do about spacejunk — one of the big questions on the agenda at the uk space conference. hello. if you have just joined if you havejustjoined us, you are very welcome. i'm sally bundock, with the top business stories, and the headlines will be dominated today by the announcements coming from the uk government on its tax and spending plans for the year ahead. the autumn statement is one of two big fiscal events each year, and this time, the chancellor is under pressure from his party to cut taxes. just this week, the prime minister rishi sunak suggested "the time had come" to cut tax. economists expect a focus on business taxes as cutting them is seen as key to helping the economy to grow,
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and late yesterday, the chancellor announced the minimum wage is to go up by more than a pound, to £11.44 per hour, from april next year. and jeremy hunt decided the rate would also apply to 21— and 22—year—olds for the first time. here's our econmics corrrespondent, andy verity. ona cold, on a cold, damp day at the south london market, ask what they want the government to do something about and you will hear two big concerns that haven't gone away. energy and food. , ., , ., , food. used to get six or seven oran . es food. used to get six or seven oranges for — food. used to get six or seven oranges for a _ food. used to get six or seven oranges for a pound, - food. used to get six or seven oranges for a pound, now - food. used to get six or seven oranges for a pound, now it i food. used to get six or seven i oranges for a pound, now it has five. lemons, ten for a pound, now 87 for a pound. it is hard for the customer, it is hard for the customer, it is hard for us as well.— for the customer, it is hard for us as well. food may not be auoin u- for us as well. food may not be going no as _ for us as well. food may not be going no as much _ for us as well. food may not be going up as much as _ for us as well. food may not be going up as much as the - for us as well. food may not be going up as much as the 1996 i going up as much as the 19% rise earlier this year but neither are prices on average getting cheaper, and the benefit of cheap energy has not yet flowed through.—
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yet flowed through. before we aid like yet flowed through. before we paid like 1200 _ yet flowed through. before we paid like 1200 300. _ yet flowed through. before we paid like 1200 300. now - yet flowed through. before we paid like 1200 300. now it - yet flowed through. before we paid like 1200 300. now it is | paid like 1200 300. now it is like more than £2000. imilli paid like 1200 300. now it is like more than £2000. with the economy is _ like more than £2000. with the economy is stuck _ like more than £2000. with the economy is stuck in _ like more than £2000. with the economy is stuck in a _ like more than £2000. with the economy is stuck in a slowdown | economy is stuck in a slowdown caused partly by soaring prices and partly higher interest rates, they have been hints the chancellor may cut income tax or national insurance. jeremy hunt's treasury is now in a position to give some money away in the form of tax cuts without breaking his self—imposed fiscal rules, but there is one big reason the treasury can do that. that's because of how much money we have been sending the treasury in the form of higher income tax and national insurance since rishi sunak took the decision to freeze the threshold above which we start paying tax. in march last year, the average earner orjust over £29,000 a year would pay tax on their earnings above the frozen personal tax allowance of 12,570. see the difference their taxable pay would be over £16,500. but by september this year the average pay packet had grown to more than £32,000, dragging more of it above the
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frozen tax threshold. that means the average earner�*s taxable pay is up by over £2000, a much bigger slice for the chancellor to take a slice from. that has hit low and middle earners howedes. if a zoom of the chancellor give some of it back for example by cutting a penny on the pound on income tax or national insurance, it will be higher earners who benefit most. ultimately what we are expecting to see is a tax reshuffle, ratherthan expecting to see is a tax reshuffle, rather than a tax cut per se. most households will be worse off as a result of the frozen tax threshold, only those earning between £110,000 and £50,000 will expect to see their tax burden falls they really this is a shift of they really this is a shift of the tax burden from high income britain to middle—income britain. businesses are also pressing the government to boost the economy by encouraging them to make investments such as new planting machinery by offsetting any money they spend on it against tax. this offsetting any money they spend on it against tax.— on it against tax. this autumn statement _ on it against tax. this autumn statement can _ on it against tax. this autumn statement can make - on it against tax. this autumn statement can make a - on it against tax. this autumn statement can make a huge . statement can make a huge difference to business investment by bringing in tax incentives that encourage and
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incentivise business to invest incentivise business to invest in their machinery, to get more efficient and productive and get britain growing again. the government — get britain growing again. the government has already announced it is raising the minimum wage up to £11.44, but a higher cost for employers, which may force many of them to push up prices yet again. andy verity, bbc news, elephant and castle. joining me now is dr roger barker, director of policy, at the institute of directors. good morning to you. what are you hoping it's in there. we ho -e you hoping it's in there. we hope the — you hoping it's in there. - hope the chancellor will really make this an autumn statement for investment and focus on business tax cuts to get business tax cuts to get business going. business confidence is pretty at a low ebb. the economy is not expected to grow any time soon, and we think that really what the chancellor needs to think about is how do we kick—start investment? investment in the
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uk has been at a very low level for a considerable period of time, probably the last five or six years, and that is the way we see that the government can best boost the economy, both in the short term, but also boost productive capacity of the economy going forward. 1&5 productive capacity of the economy going forward. as andy outlined in _ economy going forward. as andy outlined in his _ economy going forward. as andy outlined in his report, _ economy going forward. as andy outlined in his report, that - economy going forward. as andy outlined in his report, that is - outlined in his report, that is what is expected, partly through the expected announcement that the scheme that allows businesses to fully expense investment in machinery or it or whatever, and against taxable profits, that will become a permanent scheme. will that give a significant boost to business and therefore lead to business and therefore lead to economic growth, which is what the chancellor wants? tote what the chancellor wants? we think this what the chancellor wants? - think this will make a significant difference. this was introduced last april in the budget. it was introduced partly as a way of mitigating the big rise in corporation
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tax, which came into place at that time. but since then it has proven effective, in terms of encouraging investment, but it was due to expire in 2026, and we argued at the time immediately in april that there should be a permanent feature of the uk tax system, given how effective it is investing investment. so we are very happy to see the chancellor make this permanent. it will mean that we have world competitive system of capital expensing in our tax system, which is very important. what the chancellor _ which is very important. what the chancellor wants - which is very important. what the chancellor wants to - which is very important. what the chancellor wants to see . which is very important. what l the chancellor wants to see and the chancellor wants to see and the prime minister is economic growth, and quickly. they want results so that they can say to voters when the campaigning begins, and it is expected to start at some point next year, that they have delivered on their promise of causing the uk economy to grow. many experts, economists i talk to say that is very, very tough to achieve.
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they may not necessarily see results quickly. yes, i mean, we're going to see new economic forecasts published today from the office of budget responsibility. in april, they were saying that next year we would have economic growth of about 1.8%. would have economic growth of about1.8%. but would have economic growth of about 1.8%. but the bank of england recently has been saying there will be no growth next year. so i think the prospects for business and for the economy are not looking particularly good at the moment. so i think it is reasonable that the chancellor does something now to try and turn that around. i mean, does something now to try and turn thataround. i mean, he is fiscally restrained, there is no doubt about it, we have national debt equal to about 100% of gdp, say there isn't much headroom but there is perhaps a bit more fiscal headroom than he thought there would be six or seven months ago. so we think the chancellor should use that to try and encourage investment and get the economy encourage investment and get the econom— encourage investment and get the econom_ dr. the economy going again. dr roaer the economy going again. dr roger barker _ the economy going again. dr roger barker from _ the economy going again. dr roger barker from the -
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the economy going again. dr roger barker from the iod, | roger barkerfrom the iod, thank you very much indeed. now to the world of crypto currency. changpeng zhao, the co—founder and ceo of the world's largest cryptocurrency exchange, has agreed to plead guilty to violating us money laundering laws. the deal would end years of investigations into his company, binance. erin delmore reports from new york. as pa rt of as part of the agreement, he will step down from his role as chief executive of finance and will pay a $50 million fine. finance will pay a $4.3 million fine. the company will accept the payment of a monitor. —— binance. named by treasury secretaryjanet binance. named by treasury secretary janet yellen as including al-anda, acis and hamas. including al-qaeda, acis and hamas. , . hamas. the 'ustice department is hamas. the 'ustice department rsrequirrng— hamas. the justice department is requiring binance _ hamas. the justice department is requiring binance to - hamas. the justice department
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is requiring binance to pay - is requiring binance to pay $4.3 billion in penalties and forfeitures. this is one of the largest penalties we have ever obtained from a corporate defendant in a criminal matter. he is one of the most influential figures he is one of the most influentialfigures in he is one of the most influential figures in crypto. this is the latest div element to roil the industry since his rival sam bankman—fried was found guilty of fraud and money—laundering earlier this month. erin delmore there. some other business news now. after the shock dismissal of sam altman, openai directors are reportedly in talks for a possible reinstatement. according to reports by bloomberg and the financial times, the artificial intelligence company is exploring various options, including bringing mr altman back in his former position, or as a board director. almost every staff member at openai has threatened to leave, unless mr altman and co—founder greg brockman are reinstated. microsoft, the biggest investor in openai, has since offered him a job.
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chipmaker, nvidia, has said it expects a steep drop in its upcoming sales in china — a key revenue source — in the wake of new us rules. but it's forecast overall revenue above wall street targets, as supply—chain issues ease. nvidia, whose graphics processing units dominate the ai market, is set to take a hit from the vastly expanded us export controls on what the company can sell to china. dutch voters are off to the polls today. whatever the election outcome, the netherlands — the eu's fifth—biggest economy — will have its first new prime minister in over a decade, and the result will determine how conservative the country's new cabinet may be. the next leader will need to address economic growth, which has continued to stagnate. last week, the recession dragged into a third quarter, as growth shrank by 0.2% over the period.
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live now to marcel klok, macroeconomist for the netherlands ing research. good have you on the programme. my good have you on the programme. my colleague based at the hague anna holligan was explaining the economic challenges facing voters as they go the polls today. it has been very tough for a long time, hasn't it? yes, well, the dutch economy is in recession for three quarters already, and going forth we do expect growth to return, but only mild growth, and that is of course a challenge that the government can address with fiscal policies. 50 government can address with fiscal policies.— government can address with fiscal policies. so what do you think the outcome _ fiscal policies. so what do you think the outcome will- fiscal policies. so what do you think the outcome will be - fiscal policies. so what do you think the outcome will be at l think the outcome will be at this election?— this election? well, it is still uncertain _ this election? well, it is still uncertain who - this election? well, it is still uncertain who will l this election? well, it is i still uncertain who will win the election, but it is clear from political manifestos that a lot of political parties are
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aiming to continue the expansionary policies that the government has already set out. it looks like overtime government spending will increase, no matter which party will govern in the next term. and in terms of economic policies that have been promised as part of election campaigning, what ideas have been put forward to try and get the netherlands's economy back on track? 50 the netherlands's economy back on track? ~ on track? so it looks like spending _ on track? so it looks like spending is _ on track? so it looks like spending is going - on track? so it looks like spending is going up - on track? so it looks like spending is going up for| spending is going up for basically almost any item in the government's budget. it's defence spending, its climate adaptation and mitigation. it is about spending money on affordable housing but also support for lower and middle incomes. it is a broad spectrum of additional spending that most parties envisioned. of course there is differences between the left and right hand side of the political spectrum,
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but it looks like most parties are opting for a higher budget deficit than currently. to are opting for a higher budget deficit than currently.- deficit than currently. to what extent has — deficit than currently. to what extent has the _ deficit than currently. to what extent has the climate - deficit than currently. to what extent has the climate crisis l extent has the climate crisis been a part of the selection process? that is also a very important issue, isn't it, for voters? ,. ., , voters? yes, climate change is one of the _ voters? yes, climate change is one of the big _ voters? yes, climate change is one of the big debates - voters? yes, climate change is one of the big debates in - voters? yes, climate change is one of the big debates in this | one of the big debates in this election as well. it looks like most political parties are sharing the same type of goal. they share the goal of being ambitious about climate change, apart from some let's say more populist parties. there is a big discussion however about how to go about this, which instruments to use. to price carbon even more to help businesses for example to implement innovations rather than paying more taxes for example? so there is a big difference between who is going to pay for it and how to go about it, though both parties are ambitious on this process.
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marcel klok, good to talk to you. around the world and across the uk, this is bbc news. bbc news — bringing you different stories from across the uk. street street, cheap street, slow down when the call comes in on the radio. pcso brooks has got to be quick. you have received all my mail. she's chasing after hundreds of pounds worth of designer handbags. managed to catch up with him, and goods were recovered to the value ofjust over £300. in house of fraser, it's a problem the store is taking seriously. have facial recognition cameras on each of the doors. so as people come in, it picks up a face. if you have committed a crime in store before. we will get an alert to say this face has come in. sam, like lots of the security guards now know the faces to look out for. sometimes even he's surprised. there is a woman recently who is in a hostel because she'd been in an abusive
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relationship and she came in stealing food for her son. he was in a pushchair and i felt really bad for her. i paid for it. for more stories from across the uk, you're live with bbc news. as we talk through the top business stories. deliveroo cannot be legally compelled to engage with a union representing its riders for the purposes of collective bargaining, judges have ruled. the decision is the latest in a long—running dispute, which began when a union tried to represent a group of riders over pay and conditions. the case was previously dismissed by lower courts but an appeal was brought to the supreme court, which unanimously dismissed the appeal. live now to russ mould, investment director at aj bell. good morning. this is really
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interesting development. and has a lot of implications for so—called dexterous. it has a lot of implications for so-called dexterous. it does. the tlt so-called dexterous. it does. the gig riders _ so-called dexterous. it does. the gig riders are _ so-called dexterous. it does. the gig riders are still - the gig riders are still looking to form a union orjoin a union. delivery is not obliged to speak to them in the uk and judges approved the gig workers are not employees, self—employed because they have the option to turn down a job if it comes their way and have the option to deliver food for arrival. this contradicts a lot of rules we have seen in europe. into the collective bargaining agreement, france has a minimum pay agreement, the netherlands have a collective bargaining agreement and deliveroo withdrew from that. it is an ongoing story and one over time and what is greater shepparton because it is because cost is the writers and staff and there is the chat they will go up over time.
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putting it simply, is it a win for deliveroo? in putting it simply, is it a win for deliveroo?— putting it simply, is it a win for deliveroo? in the uk, yes. therefore _ for deliveroo? in the uk, yes. therefore going _ for deliveroo? in the uk, yes. therefore going forward, - for deliveroo? in the uk, yes. therefore going forward, i - therefore going forward, i wonder what this will mean for their rivals because they will be watching this closely because the implications for them. it because the implications for them. , ., ., them. it will. deliveroo, looking _ them. it will. deliveroo, looking at— them. it will. deliveroo, looking at the _ them. it will. deliveroo, looking at the last - them. it will. deliveroo, i looking at the last report, they stressed 82% of riders said they were happy to work for them. an 80% are not. i am sure management will continue to emphasise that statistic. it is a challenge for the wider food delivery industry. rising labour costs, rising food costs, he riders that have a motorbike rather than a bicycle have rising energy costs and is one of the challenges to a model that at the moment to the prospective shareholders isn't producing enough. interesting to watch. thank _ producing enough. interesting to watch. thank you _ producing enough. interesting
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to watch. thank you and - producing enough. interesting to watch. thank you and good| producing enough. interesting i to watch. thank you and good to see. i am sure you will be busy with the autumn statement. you will die by- _ with the autumn statement. you will die by- -- — with the autumn statement. you will die by. -- you _ with the autumn statement. you will die by. -- you and _ with the autumn statement. ii’f7l. will die by. —— you and i both. saudi arabia is all set to launch its second national carrier, riyadh air, which will be based out of the country's capital. it is owned by saudi arabia's public investment fund. the creation of a second saudi national airline is part of oil producer saudi arabia's plan to diversify its economy. earlier this year, riyadh air placed an orderfor 72 boeing 787 wide bodyjets, and the airline's chief executive, tony douglas, told the bbc that the airline will announce a new order for narrow—bodied aircraft soon. he spoke to the bbc�*s middle east business correspondent, sameer hashmi, who began by asking him about when the airline was going to take off. we will go live in q2 of 2025 which to some people might sound like a long time in the
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future. i can tell you, and our line of business, that is almost like tomorrow morning stop we have got a huge amount of very exciting tasks to complete. and what is the largest aviation start—up within this region or perhaps over 30 years. super exciting. the factors there is already a national carrier in arabia which has been operationalfor decades. a wide network. how are you going to compete and differentiate?— differentiate? you will see a lot of announcements - differentiate? you will see a lot of announcements now l differentiate? you will see a - lot of announcements now about the way in which collaboration between us will work. whether the two national carriers of the two national carriers of the kingdom and the population of the kingdom is the biggest within the whole of the arabian peninsula. we are talking about a landmass that is two—thirds the size of western europe.
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going forward, it will allow both carriers to grow and the kingdom needs that kind of connectivity because it is the fastest growing economy within the g20. fastest growing economy within the 620. ., , ., fastest growing economy within the 620. ., y ., , ., the 620. can you give us a sense of— the 620. can you give us a sense of what _ the 620. can you give us a sense of what you - the 620. can you give us a sense of what you do - the 620. can you give us a sense of what you do go i sense of what you do go operational, when you do go live, what will the fleet size and are you close to ordering more aircraft?— more aircraft? earlier this ear more aircraft? earlier this year back _ more aircraft? earlier this year back in _ more aircraft? earlier this year back in march - more aircraft? earlier this year back in march we - more aircraft? earlier this i year back in march we placed more aircraft? earlier this - year back in march we placed an order with boeing for 77 dreamliner. 121 aircraft as part of the kingdom wide order. 72 of this aircraft are for riyadh. very soon we will be announcing the campaign winner of our narrow body aircraft fleet. it will be a sizeable order. that narrow body fleet on top of the 72 aircraft being the kind of fleet necessary for us to be able to connect to 110 cities by 2030.—
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cities by 2030. really interesting. _ cities by 2030. really interesting. a - cities by 2030. really interesting. a new - cities by 2030. really . interesting. a new airline taken to disguise. —— the skies. the uk space conference 2023 is under way in belfast. back in october 1957, the space age began when the soviet union launched the very first artificial satellite into space. in the 6.5 decades since, the number of objects launched into orbit has skyrocketed and as a result so too has the amount of space debris orjunk. the uk is styling itself as a global leader in space sustainability with the uk space agency underpinning a range of new initiatives. heading up this work, ranging from developing sustainability standards to leading a national debris removal mission, is ray fielding. head of sustainability and active debris removal at the uk space agency. good morning. iam not surprised to hear that this is a problem given when you look at what certain companies are
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up at what certain companies are up to, putting up satellites, etc, that does not seem to be any regulation or restrictions. talk us through what is going on. �* , ., , talk us through what is going on. as our minister yesterday, it is a bit _ on. as our minister yesterday, it is a bit like _ on. as our minister yesterday, it is a bit like the _ on. as our minister yesterday, it is a bit like the wild - on. as our minister yesterday, it is a bit like the wild west. i it is a bit like the wild west. since the space age began we have gone from debris to now around 36,000 objects over ten centimetres which the space agency is tracking. that is the large objects. below ten centimetres is about a million objects. the one centimetre there is estimated to be up to 200 million. we're not quite sure, we know there is a huge amount. these objects range from defunct derelict satellites down to flexor paint and even tools to which astronauts drop. each objects are travelling ten times the speed of a bullet. quite serious consequences if they hit something.— serious consequences if they hit something. briefly talk us throu . h hit something. briefly talk us through there _ hit something. briefly talk us through there because - hit something. briefly talk us through there because of- hit something. briefly talk us| through there because of how dangerous is space junk?
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through there because of how dangerous is spacejunk? tote dangerous is space junk? - transitioned to a digital economy around the world. our digital economy depends on satellites. iflew here digital economy depends on satellites. i flew here and backplane used space data, gps, to get here. i used gps to get to get here. i used gps to get to the airport. everything we do from the banking sector to be exact timing for financial transactions and how freight moves around the world depends on satellites to enable services to happen. if the satellites are damaged through space to or spacejunk satellites are damaged through space to or space junk hitting them, we lose those services. they can have a catastrophic effect on the world economy. quickly, sorry, we're nearly out of time. what is the plan? the planners better guidelines, responsible behaviour for when people want to stop into space for that have an active plan to not create space debris and remove space to bring up there.
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we have a mission plan to remove defunct uk satellites to help ease the problem. we remove defunct uk satellites to help ease the problem.- help ease the problem. we do appreciate _ help ease the problem. we do appreciate your _ help ease the problem. we do appreciate your time - help ease the problem. we do appreciate your time and - help ease the problem. we doj appreciate your time and hope you make progress on this idea. during this event taking place at the moment. before we wrap up at the moment. before we wrap up the programme, wejust at the moment. before we wrap up the programme, we just want to remind you of the breaking news that emerged overnight. a deal has been brokered tween israel and hamas. they have agreed to a deal to release hostages during a pause in fighting. in the next 24 hours, tara who helped brokered the steel was an integral part of the negotiations between the two sides. saying in the next 24 hours it will be announced when the pause and hostilities will begin. the idea is the break in the intense fighting will mean hundreds of lorries of humanitarian medical and
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fuel aid can enter all parts of the gaza strip. this will come ljy the gaza strip. this will come by egypt's wrapper crossing. the by eqth's wrapper crossing. the us president biden has welcomed the steel being confirmed. it is expected after 50 hostages released initially, the israeli hostages, three of those are expected to be american. we will have more understanding top of the hour here on bbc news. hello. some changes in the feel of our weather over the next few days. tuesday brought temperatures generally around the average for the time of year. it was a little bit chilly in some locations. for wednesday, westerly winds introducing milder air and double digit temperatures for the majority. but then the end of the week will bring northerly winds and something colder. in the short term, wednesday morning brings high pressure to the south of us, low
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pressure to the north. and this frontal system between this warm front here and this cold front here, a wedge of warm or at least mild air. within that wedge of mild air, a lot of cloud, that cloud producing some rain at times, particularly across hills in the north and the west. that rain enhanced by a weather front in the north of scotland. pretty cloudy for northern ireland, northern england, north wales, the odd spot of rain. further south and east, a few brighter glimpses on what will be a breezy day, in fact, a windy one across the northern half of the uk. temperatures, though, in double digits forjust about all of us broadly 11—14 celsius. now, as we head through wednesday night, we will see this frontal system starting to journey southwards, outbreaks of rain with that. ahead of it, a lot of cloud, it is going to be very mild. behind that frontal system, we will just start to introduce something a little bit colder. it will turn increasingly windy, too, across the north of scotland.
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so here's our weather front for thursday. it'll be moving southwards. it's a cold front you'll notice, that means the air behind it is going to be turning colder. so here's ourfrontal system — this is the dividing line ahead of it. a lot of cloud through the day on thursday. behind the weather front, sunny spells and showers. some of those showers turning wintry over high ground in northern scotland. gales developing in the far north here. it really will feel cold by the end of the afternoon. furthersouth, holding on to something milder. but by friday, all of us into these northerly winds, some showers which will be wintry, especially over higher ground in the north, perhaps even to lower levels in the far north for a time. some decent spells of sunshine, still 11 celsius in cardiff and plymouth, but most places feeling colder than that. in fact, when we factor in the strength of the wind, it will feel subzero for some parts of eastern and northeastern scotland. into the weekend, we stick with a chilly feel. there will be quite a lot of dry weather, though, and some spells of sunshine. bye for now.
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good morning. welcome to breakfast with sally nugent and jon kay. our headlines today... the chancellor, jeremy hunt, prepares to deliver his autumn statement — it's thought a cut in national insurance will be among the measures.
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he's also expected to include a cut to business taxes and tough new benefit sanctions — the question is how will it go down in commuities like this in hull, where many are still struggling with rising prices and squeezed budgets? israel and hamas agree a deal to secure the release of 50 hostages and pause the fighting in gaza for at least four days. special prayers will be held in shrewsbury for the four teenage friends, who lost their lives in a car accident in north wales at the weekend. in sport, it wasn't wales's night. missing out on automatic qualification to next summer's euros but can still qualify through the play offs. 3, 2, 1... top gear is parked by the bbc for the forseeable future. we'll look back at the highs and lows of a show which often
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courted controversy.

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